My Opinion on Building Generational Wealth

[Corey Conklin]

This is something I hear real estate investors talk about all the time. Their goal is to build generational wealth for their kids, grandchildren, great grandchildren, etc. They believe by building a good real estate portfolio and acquiring assets they will create generational wealth for their family. I believe I have a controversial take on this stance. I 100% disagree with this line of thinking!

There are stories of family’s that have had multiple generations build wealth through owning land, real estate, oil, etc. that have lost it all in 1 generation! Wealth is incredibly hard to obtain and 10x harder to keep. Just because you are able to hand over your children and grandchildren wealth doesn’t mean that they will know how to keep it. They have to know how to handle the wealth if they are going to keep it. My focus will be on teaching them how to create and keep wealth, not handing it over to them.

How I will focus to create generational wealth will be the complete opposite of what most people want to do. My kids will not be handed anything in life, they will EARN everything. I will not give them money, instead I will be there to teach them what they need to know to get their own money. I will teach them what I’ve learned in my life that they can use to create their own success. When they need advice, I’ll be sure to provide it. When they are struggling through the rough times, I’ll be there to support them. My goal is to create kids who are good people. If I can do that, they won’t need my wealth, they will have their own.

What are your thoughts about creating generational wealth?

[Jay Hinrichs]

now from reality.

I have worked in this industry for 50 years now.. and met all sorts of folks from beginners to the Very wealthy..

what I see many times is when the kids do inherit most of them have no interest in owning the rentals or whatever property they are getting as most of the time there is massive equity.  And they just want to sell and cash out.. granted some will hold on but for many second they can sell they do so. 

So if folks are wanting their kids to keep the assets then they have to be put into a trust with very clear defined rules of the road to follow.  Anything short of that and all those rentals yo toiled with will be liquidated as soon as humanly possible.

plus if there is multiple kids rare is it they all have a meeting of the minds .. so again they just sell and divvy up.  Specially with stepped up basis.